A Partnership Has Accounts Receivable with a Basis of $0

question 95

True/False

A partnership has accounts receivable with a basis of $0 and a fair market value of $20,000 and depreciation recapture potential of $30,000.All other assets of the partnership are either cash, capital assets, or § 1231 assets.If a purchaser acquires a 40% interest in the partnership from another partner, the selling partner will be required to recognize ordinary income of $20,000.

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Definitions:

Transtheoretical Model

A theory that outlines stages of change individuals go through in modifying behavior towards a healthier lifestyle.

Health Belief Model

A psychological framework that projects and clarifies the health practices of people by delving into their personal attitudes and beliefs.

Planned Behavior

A theory in psychology that explains individuals' intention to engage in a behavior based on attitudes, subjective norms, and perceived behavioral control.

Stage Models

Theoretical frameworks that describe a sequence of stages that individuals go through in the process of behavioral or psychological change.